The history of recessions

[Truthmatters]

OpEdNews - Article: A History of Recession in the United States 1950 to 2008


There is a pattern here that is plain to all but the most partisan. Ten of the last eleven recessions have occurred under the direction of Republican economic policy. And history does repeat itself. Look at the three greatest slowdowns in US economic history, 1929, 1982, 2008, all three were attributed to poor economic and tight credit policy, all three featured deregulation and lack of oversight of the financial markets, and all three were presided over by a Republican President.

Recession/Depression of 2008 George W. Bush (R) greatest downturn since 1929, blamed on lack of regulation of financial markets and collapse of credit markets

Recession of 2001 George W. Bush (R) began in April of 2001, -marked the beginning of greatest deficit spending in all of recorded human history-



Recession of 1990-1991 George H.W. Bush (R) Deregulation of Savings and Loan industry led to a collapse and panic, which led to election of Bill Clinton, who produced the greatest increase in jobs and wealth in all of recorded human history.

 

[Truthmatters]

List of recessions in the United States - Wikipedia, the free encyclopedia



Free Banking Era to the Great Depression

is very interesting.

there was a recession evey couple of years during this whole time.

Glass Steagal changed this pattern.

 

[ihopehefails]

List of recessions in the United States - Wikipedia, the free encyclopedia



Free Banking Era to the Great Depression

is very interesting.

there was a recession evey couple of years during this whole time.

Glass Steagal changed this pattern.

Most recessions are prolonged by democrats. Just compare the 01 recession to all others.

 

[Skull Pilot]

There was no tight credit policy under Clinton or GW Bush

Easy credit and artificially low interest rates were part of the problem.

 

[Charles Stucker]

Recession of 1990-1991 George H.W. Bush (R) Deregulation of Savings and Loan industry led to a collapse and panic, which led to election of Bill Clinton, who produced the greatest increase in jobs and wealth in all of recorded human history.

If the TRUTH actually matters to you, then you should note that Bill Clinton did NOT produce the greatest increase in jobs/wealth. The internet revolution did that. A revolution brought about by scientists and engineers, not politicians or cheesy political hacks.

 

[Skull Pilot]

Recession of 1990-1991 George H.W. Bush (R) Deregulation of Savings and Loan industry led to a collapse and panic, which led to election of Bill Clinton, who produced the greatest increase in jobs and wealth in all of recorded human history.

If the TRUTH actually matters to you, then you should note that Bill Clinton did NOT produce the greatest increase in jobs/wealth. The internet revolution did that. A revolution brought about by scientists and engineers, not politicians or cheesy political hacks.

And that bubble popped just after the Slickster left office

 

[Soggy in NOLA]

Truthmatters is about 17 I'm guessing. Ignore it... Engaging that numbnut will make your brain hurt.

 

[Oldandtired]

Recessions are cyclical and priomarily based on market saturation.
Policies are applied to either ease the pain of a recession or stimulate growth in an attemtpt to shorten a recession. However, it is always best to leave it alone but those that are seeking re-election...or initial election, tend to use recessions as a platform.

This particular recession may be the worst for one reason only....as demand for goods and services decreased...again due to market saturation.....employers deemed it cost effective to deal with the cost of unemployment and lay off people. Due to technological advances since the last "high unemployment" climate, they are seeing how they can now live without many of those employees.

Yes, they knew that may be the case 3 years ago...but the cost of unemployment, (and yes, the employer bears the burden of unemployment) had many employers keep their employees as it was cost effective to do so.

Now they are reluctant to hire them back.

It used to be 10 file clerks....6 layed off....then 6 hired back.

Now it is 10 file clerks......6 layed off....and only a data entry clerk hired in return.

Politicians ride the coattails of a recession....they do not cause them.

 

[Truthmatters]

Interestig the reaction to the posting of historical facts elicited these types of reactions

 

[The T]

OpEdNews - Article: A History of Recession in the United States 1950 to 2008


There is a pattern here that is plain to all but the most partisan. Ten of the last eleven recessions have occurred under the direction of Republican economic policy. And history does repeat itself. Look at the three greatest slowdowns in US economic history, 1929, 1982, 2008, all three were attributed to poor economic and tight credit policy, all three featured deregulation and lack of oversight of the financial markets, and all three were presided over by a Republican President.

Recession/Depression of 2008 George W. Bush (R) greatest downturn since 1929, blamed on lack of regulation of financial markets and collapse of credit markets

Recession of 2001 George W. Bush (R) began in April of 2001, -marked the beginning of greatest deficit spending in all of recorded human history-



Recession of 1990-1991 George H.W. Bush (R) Deregulation of Savings and Loan industry led to a collapse and panic, which led to election of Bill Clinton, who produced the greatest increase in jobs and wealth in all of recorded human history.

However *YOU* forget to Mention CONGRESS that controls purse strings.

Don't apologize...just go away.

 

[Truthmatters]

You cant fight this history can you.

Tell me the makeup of each of the congresses that served undre these presidents?

 

[The T]

You cant fight this history can you.

Tell me the makeup of each of the congresses that served undre these presidents?

You didn't look too closely...DID you?

 

[RadiomanATL]

I find it amusing when someone tries to correlate an economic downturn or upswing to whichever party is sitting in the whitehouse.

Economies don't move that fast towards one direction or another based on legislation that is recently passed.

Hell, a large part of the one we're in now can be credited to Clinton (with the Republican congress) repealing Glass-Steagall.

And people want to blame Obama for this one...


...or conversely, George W. for the one that started 2-1/2 months after he got into office.


Partisan hackery. All of it.

 

[The T]

Truth Doesn't matter? Fuck the PAST and LIVE in the NOW.

Check this shit will you?

http://www.usmessageboard.com/2310325-post101.html

Owned...Lock, Stock, And Barrel. And what is Obama doing NOW of it...eh?

I thought so. Buh-Bye.

 

[Toro]

No, no, no. I have to disagree. Its clearly a politically motivated article. Most recessions aren't the fault of the federal government. (Likewise, most expansions shouldn't be credited to the government either.) Most recessions have to do with the natural swings in the business cycle and the interest rate responses by the Federal Reserve.

Neither the 2008 recession nor the 2001 recession was the fault of Bush. Both recessions have to do with insane asset bubbles, first the tech bubble which fomented primarily under Clinton, then the housing bubble, where the root cause was policy responses to the collapse of the tech bubble. Yes, deregulation had some part to do with 2008, but it wasn't the primary cause.

1990-91 wasn't the fault of Bush I, either. The S&L crisis began before he got into office. But the real reason for the recession was because the Fed jacked interest rates up dramatically to head off the inflation caused by the loose monetary policy in response to the 1987 market crash.

The recessions under Reagan had nothing to do with Reagan. They were because of the extremely tight monetary policy of the Fed under Paul Volcker, who had jacked up interest rates to break inflation, which he did successfully. And the subsequent expansion in the 1980s had more to do with Volcker than it did with Reagan.

The recessions in the 1970s and 1980s were due mainly because of the expansionary policies of the federal government and Federal Reserve in the 1960s and 1970s, which created inflation. They began under LBJ's guns and butter policies. Carter's responses were inept, but he wasn't responsible for the economic mess, and he did appoint Volcker, who was probably the greatest US central banker of all time.

Contrary to what most politically partisan people believe and argue, the economy has little to do with what the federal government does. The federal government is not irrelevant but generally, the institutions of the United States foster economic growth. The American people are industrious, dynamic and optimistic. These are the reasons why the American economy is so dynamic. And it will be well into the future, long after Obama and, God-forbid, Palin are done being President.

 

[onecut39]

Most recessions are prolonged by democrats. Just compare the 01 recession to all others.

Many would say that there never was any but the weakest recovery from the 01 recession.

Two tax cuts and a "prebate" led us to the worst financia situation in 80 years.

 

[xsited1]

No, no, no. I have to disagree. Its clearly a politically motivated article. Most recessions aren't the fault of the federal government. (Likewise, most expansions shouldn't be credited to the government either.) Most recessions have to do with the natural swings in the business cycle and the interest rate responses by the Federal Reserve.

Neither the 2008 recession nor the 2001 recession was the fault of Bush. Both recessions have to do with insane asset bubbles, first the tech bubble which fomented primarily under Clinton, then the housing bubble, where the root cause was policy responses to the collapse of the tech bubble. Yes, deregulation had some part to do with 2008, but it wasn't the primary cause.

1990-91 wasn't the fault of Bush I, either. The S&L crisis began before he got into office. But the real reason for the recession was because the Fed jacked interest rates up dramatically to head off the inflation caused by the loose monetary policy in response to the 1987 market crash.

The recessions under Reagan had nothing to do with Reagan. They were because of the extremely tight monetary policy of the Fed under Paul Volcker, who had jacked up interest rates to break inflation, which he did successfully. And the subsequent expansion in the 1980s had more to do with Volcker than it did with Reagan.

The recessions in the 1970s and 1980s were due mainly because of the expansionary policies of the federal government and Federal Reserve in the 1960s and 1970s, which created inflation. They began under LBJ's guns and butter policies. Carter's responses were inept, but he wasn't responsible for the economic mess, and he did appoint Volcker, who was probably the greatest US central banker of all time.

Contrary to what most politically partisan people believe and argue, the economy has little to do with what the federal government does. The federal government is not irrelevant but generally, the institutions of the United States foster economic growth. The American people are industrious, dynamic and optimistic. These are the reasons why the American economy is so dynamic. And it will be well into the future, long after Obama and, God-forbid, Palin are done being President.

Most recessions aren't the fault of the federal government? O'Rly? Then why did you mention 3 times in your post that the Federal Government was responsible?

In fact, Milton Friedman, Nobel Prize winning economist, proved that the Federal Reserve definitely caused the Great depression by contracting the amount of currency in circulation by one-third from 1929 to 1933.

 

[Toro]

No, no, no. I have to disagree. Its clearly a politically motivated article. Most recessions aren't the fault of the federal government. (Likewise, most expansions shouldn't be credited to the government either.) Most recessions have to do with the natural swings in the business cycle and the interest rate responses by the Federal Reserve.

Neither the 2008 recession nor the 2001 recession was the fault of Bush. Both recessions have to do with insane asset bubbles, first the tech bubble which fomented primarily under Clinton, then the housing bubble, where the root cause was policy responses to the collapse of the tech bubble. Yes, deregulation had some part to do with 2008, but it wasn't the primary cause.

1990-91 wasn't the fault of Bush I, either. The S&L crisis began before he got into office. But the real reason for the recession was because the Fed jacked interest rates up dramatically to head off the inflation caused by the loose monetary policy in response to the 1987 market crash.

The recessions under Reagan had nothing to do with Reagan. They were because of the extremely tight monetary policy of the Fed under Paul Volcker, who had jacked up interest rates to break inflation, which he did successfully. And the subsequent expansion in the 1980s had more to do with Volcker than it did with Reagan.

The recessions in the 1970s and 1980s were due mainly because of the expansionary policies of the federal government and Federal Reserve in the 1960s and 1970s, which created inflation. They began under LBJ's guns and butter policies. Carter's responses were inept, but he wasn't responsible for the economic mess, and he did appoint Volcker, who was probably the greatest US central banker of all time.

Contrary to what most politically partisan people believe and argue, the economy has little to do with what the federal government does. The federal government is not irrelevant but generally, the institutions of the United States foster economic growth. The American people are industrious, dynamic and optimistic. These are the reasons why the American economy is so dynamic. And it will be well into the future, long after Obama and, God-forbid, Palin are done being President.

Most recessions aren't the fault of the federal government? O'Rly? Then why did you mention 3 times in your post that the Federal Government was responsible?

In fact, Milton Friedman, Nobel Prize winning economist, proved that the Federal Reserve definitely caused the Great depression by contracting the amount of currency in circulation by one-third from 1929 to 1933.

I am differentiating between the Federal Reserve and the Federal government. The Fed is usually responsible for recessions because it raises interest rates to cool an overheating economy. This is why its generally wrong to say "This President or that party caused the recession." The President and Congress don't set interest rates.

The inflation of the 1970s had its genesis in the expansion of federal spending under LBJ and Nixon, and the expansion of the money supply and unhinging of the dollar to the Bretton Woods system. OPEC played a part, but not as much as most people think. It was this inflation which caused the recessions of the 1970s and early 80s. The recessions of 1980 and 1982 weren't the fault of Reagan, or Carter. They were induced to break inflation.

 

[xsited1]

No, no, no. I have to disagree. Its clearly a politically motivated article. Most recessions aren't the fault of the federal government. (Likewise, most expansions shouldn't be credited to the government either.) Most recessions have to do with the natural swings in the business cycle and the interest rate responses by the Federal Reserve.

Neither the 2008 recession nor the 2001 recession was the fault of Bush. Both recessions have to do with insane asset bubbles, first the tech bubble which fomented primarily under Clinton, then the housing bubble, where the root cause was policy responses to the collapse of the tech bubble. Yes, deregulation had some part to do with 2008, but it wasn't the primary cause.

1990-91 wasn't the fault of Bush I, either. The S&L crisis began before he got into office. But the real reason for the recession was because the Fed jacked interest rates up dramatically to head off the inflation caused by the loose monetary policy in response to the 1987 market crash.

The recessions under Reagan had nothing to do with Reagan. They were because of the extremely tight monetary policy of the Fed under Paul Volcker, who had jacked up interest rates to break inflation, which he did successfully. And the subsequent expansion in the 1980s had more to do with Volcker than it did with Reagan.

The recessions in the 1970s and 1980s were due mainly because of the expansionary policies of the federal government and Federal Reserve in the 1960s and 1970s, which created inflation. They began under LBJ's guns and butter policies. Carter's responses were inept, but he wasn't responsible for the economic mess, and he did appoint Volcker, who was probably the greatest US central banker of all time.

Contrary to what most politically partisan people believe and argue, the economy has little to do with what the federal government does. The federal government is not irrelevant but generally, the institutions of the United States foster economic growth. The American people are industrious, dynamic and optimistic. These are the reasons why the American economy is so dynamic. And it will be well into the future, long after Obama and, God-forbid, Palin are done being President.

Most recessions aren't the fault of the federal government? O'Rly? Then why did you mention 3 times in your post that the Federal Government was responsible?

In fact, Milton Friedman, Nobel Prize winning economist, proved that the Federal Reserve definitely caused the Great depression by contracting the amount of currency in circulation by one-third from 1929 to 1933.

I am differentiating between the Federal Reserve and the Federal government. The Fed is usually responsible for recessions because it raises interest rates to cool an overheating economy. This is why its generally wrong to say "This President or that party caused the recession." The President and Congress don't set interest rates.

The inflation of the 1970s had its genesis in the expansion of federal spending under LBJ and Nixon, and the expansion of the money supply and unhinging of the dollar to the Bretton Woods system. OPEC played a part, but not as much as most people think. It was this inflation which caused the recessions of the 1970s and early 80s. The recessions of 1980 and 1982 weren't the fault of Reagan, or Carter. They were induced to break inflation.

Except that the seven members of the Board of Governors of the Federal Reserve are appointed by the President and confirmed by the Senate to serve 14-year terms of office. In addition, the President designates and the Senate confirms, two members of the Board to be Chairman and Vice Chairman for four-year terms so there is clearly a political component. You've also got the 12 Federal Reserve districts which also have a major political component.

Ron Paul had it right: "The Fed is a political institution that is used to manipulate the economy for the benefit of White House incumbents at the expense of the rest of society."

The fact is, most recessions are the fault of the federal government.

 

[Oscar Wao]

Um, xsited1, that was kinda Toro's point...that the Fed does have policies that manipulate the economy.